One thing to keep in mind about the Republican debt-ceiling plan unveiled last week is that it’s not likely to be signed into law in its current form. Even if it passes the U.S. House, it likely won’t get approved by the Democrat-controlled Senate or signed by President Joe Biden, experts say.
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Even so, some parts of the GOP plan might eventually make it into law. House Majority Leader Kevin McCarthy (R-Calif.) claims the plan will save taxpayers $4.5 trillion via spending cuts, Yahoo Finance reported. It would also raise the federal borrowing limit by $1.5 trillion, thus helping the government avert a default.
The proposed spending cuts target a number of federal programs, from student loan forgiveness and food purchasing assistance to IRS funding, green energy tax credits and COVID-19 aid.
One thing the cuts won’t touch is Social Security — at least directly. The plan does not include cuts that would scale back Social Security retirement benefits. However, overall budget cuts to federal programs could make it more difficult to administer benefits, Reuters reported.
What the cuts probably won’t do is lower your tax bill. As Reuters noted, McCarthy’s plan does not include provisions to extend temporary individual tax cuts that are due to expire in 2025.
It didn’t take long for Democrats to attack the GOP plan. An April 20 White House blog written by Shalanda Young,...
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